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andrezito [222]
2 years ago
5

Consider a call option on an asset with an exercise price of $100, a put option on that same asset with an exercise price of $10

0, both expiring at the same time. Assume that at the expiration, the current market price of the asset is each of the following two values. Explain what happens from the perspective of the long position for each of the two options.
Business
1 answer:
zubka84 [21]2 years ago
5 0

Answer: The values are missing below are the values

a. $105

b. $95

answer :

a) $5

b) -$5 ( loss )  

Explanation:

From the perspective of the long position for each of the two options  upon expiration

a) For $105

for the long position ( long call ) since the expired price > than the exercise price

i.e. $105 > $100 the profit = $105 - $100 = $5

b) For $95

For the long position ( long call ) since the expired price < than the exercise price

i.e. $95 < $100 the profit = $95 - $100 =  - $5  ( a loss is incurred )

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<u>Answer:</u>

When composing the marketable strategy, the tasks plan <em>segment portrays</em> the <em>physical necessities </em>of your business' activity,

<u>Explanation:</u>

<em>For example,</em> your business' physical area, offices, and hardware. Contingent upon what sort of business you'll be working,

it might likewise incorporate data about stock necessities, providers, and a portrayal of the <em>assembling procedure.</em>

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3 years ago
True Furniture Co., Ltd. produces desks and cabinets for computers. The production process is largely divided into woodworking a
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4 0
3 years ago
Which of the following equals the amount of public​ saving?
ollegr [7]

Answer:

The answers are:

  • A) Government tax revenue minus the sum of government purchases and transfer payments to households.
  • B) a budget surplus

Explanation:

The formula to calculate public saving is (T - G - TR).

  • T stands for all the government revenue through taxes and tariffs.
  • G stands for all the government spending including purchase of goods and provision of services.  
  • TR stands for all the government transfers including payments to individuals and households through social programs (including social security).  

Budget surplus is the same as public saving.

3 0
3 years ago
Miller Corporation issued 7 comma 000 shares of its​ $5 par value common stock in payment for attorney services billed at $ 70 c
Elina [12.6K]

Answer:

credit to share capital account .

common stock capital : $35,000 Credit

share premium account: $35,000 credit

Explanation:

The share capital (capital accounts) are usually credit entries. The share is trading at a premium of $5 per unit , Issue of 7000 common stock will realise a total cash of $70,000 which is used to pay off attorney services. The common stock share capital will increase by 7000 x $5 = $35,000 and the balance premium ($35,000) will be to share premium account

3 0
3 years ago
A small fast-food restaurant is automating its burger production. The owner needs to decide whether to rent a machine that can p
Alina [70]

Answer:

$11,700 and $12,240

Explanation:

According to the scenario, computation of the given data are as follow:-

Total Revenue = No. of Sale Units × Selling Price Per Unit

= 2,000 × $10

= $20,000

In case if the restaurant lease the machine with the higher marginal cost, restaurant owner earned profits

= Total Revenue - Total Cost

where,

Total cost is is Fixed cost + variable cost

Variable Cost = No. of Sale Units × (Marginal Cost + Cost of Ingredients for Each Burger)

= 2,000 × ($1 + $2)

= $6,000

Total Cost = Fixed Cost + Total Variable Cost

= $2,300 + $6,000

= $8,300

And, the total revenue is $20,000

So, the profit earned is

= $20,000 - $8,300

= $11,700

In case if the restaurant lease the machine with the lower marginal cost, restaurant owner earned profits

= Total Revenue - Total Cost

where,

Total cost is Fixed cost + variable cost

Variable Cost = No. of Sale Units × (Marginal Cost + Cost of Ingredients for Each Burger)

= 2,000 × ($0.50 + $2)

= $5,000

Total Cost = Fixed Cost + Total Variable Cost

= $2,760 + $5,000

= $7,760

And, the total revenue is $20,000

So, the earned profit is

= $20,000 - $7,760

= $12,240

4 0
3 years ago
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